Krista Jean Mudrick, Lying to FBI, OR 2017

Krista Jean Mudrick, 36, of Deschutes County, Oregon, was sentenced to three years of probation and 200 hours of community service on January 30, 2017, for making false statements to FBI and IRS agents during a federal corruption probe. The sentence, handed down by U.S. District Judge Michael J. McShane in Eugene, marks the fallout from a scheme that saw public funds diverted to fund luxury gifts and vacations for Mudrick by her former lover, a high-ranking law enforcement officer.

Mudrick, a former employee of the Deschutes County Sheriff’s Office, pleaded guilty on September 15, 2016, to making material false statements about her relationship with former Deschutes County Sheriff Captain Scott Raymond Beard and the cash and gifts she received from him. She lied about the nature of their affair and the financial benefits she obtained, including deposits made directly into her bank account—money later proven to be stolen public funds.

Beard, who was sentenced to five years in prison on September 8, 2016, stole $205,747 in federal grant money intended for drug enforcement programs. He falsified records, funneled cash into Mudrick’s accounts, and used taxpayer dollars to pay for a resort vacation abroad with her, a motorcycle, and her apartment. Judge McShane made it clear: ‘The community has to know that [this conduct] will not be tolerated.’

At her sentencing, Mudrick admitted to lying to federal investigators but claimed she had no knowledge that the money came from stolen public funds. Prosecutors argued her deception was part of a broader cover-up, but ultimately conceded that her false statements did not derail the investigation into Beard’s crimes. Her cooperation and lack of prior criminal history weighed in her favor.

Judge McShane cited Mudrick’s clean record and her offer to perform community service—something she has a history of, as a longtime volunteer for multiple charities—when deciding against incarceration. Still, the sentence underscores federal zero tolerance for obstructing justice, even when the defendant isn’t the primary thief.

The case was jointly investigated by the FBI and IRS, and prosecuted by Assistant U.S. Attorneys Christopher Cardani and Frank R. Papagni, Jr. of the District of Oregon. It exposes how public trust was exploited behind closed doors, with taxpayer money fueling a secret affair while those sworn to uphold the law broke it.